Unconventional Investing Ideas: Prosper.com Loans

Ever since I applied for my first credit card and read the interest terms I admired the people who ran Visa, Mastercard, and America Express. I thought “they make people pay them money to buy things they didn’t even make! Wow!!”

Having a lot of money makes it easy to make money. To quote Al Bundy “money likes money”. Prosper.com allows me to live my dream of collecting money for doing almost nothing by allowing normal people like you and me to lend money to people who need it for an agreed on interest rate.

You have complete control over who you lend your money to. Prosper displays credit scores on a scale from F – A and their debt / income ratio. You can also break up your risk and loan small amounts of money to several people instead of lending one big chunk of money to a single person. If somebody defaults, collection services are hired on your behalf to recover your investment.

Prosper.com's Diagram Explaining how Lending and Borrowing Works